Project Administration Manual Project Number: 44021 August 2012 People’s Republic of China: Integrated Development of Key Townships in Central Liaoning Contents ABBREVIATIONS 5 WEIGHTS AND MEASURES 5 I. PROJECT DESCRIPTION 1 A. Rationale 1 B. Impact and Outcome 4 C. Outputs 4 II. IMPLEMENTATION PLANS 1 A. Project Readiness Activities 1 B. Overall Project Implementation Plan 2 III. PROJECT MANAGEMENT ARRANGEMENTS 1 A. Project Implementation Organizations – Roles and Responsibilities 1 B. Key Persons Involved in Implementation 2 C. Project Organization Structure 4 IV. COSTS AND FINANCING 1 A. Summary Cost Estimates and Financing Plan 1 B. Detailed Cost Estimates by Expenditure Category 3 C. Detailed Cost Estimate by Financier 4 D. Detailed Cost Estimates by Outputs/Components 6 E. Detailed Cost Estimates by Years 7 F. Allocation and Withdrawal of Proceeds 8 G. Contract and Disbursement S-curve 10 H. Fund Flow Diagram 11 V. FINANCIAL MANAGEMENT 1 A. Financial Management Assessment 1 B. Disbursement 1 C. Accounting and Financial Reporting 3 D. Auditing 3 VI. PROCUREMENT AND CONSULTING SERVICES 1 A. Advance Contracting and Retroactive Financing 1 B. Procurement of Goods, Works and Consulting Services 2 C. Procurement Plan 2 D. Consultant's Terms of Reference 8 VII. SAFEGUARDS 1 A. Environment 1 B. Land Acquisition and Resettlement 2 C. Indigenous Peoples 11 VIII. GENDER AND SOCIAL DIMENSIONS 1 A. Social and Poverty Benefits 1 B. Social Development Action Plan 1 C. Gender Benefits 6 D. Gender Action Plan 6 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 1 A. Project Design and Monitoring Framework 1 B. Monitoring 5 C. Evaluation 13 D. Reporting 13 E. Stakeholder Communication Strategy 14 X. ANTICORRUPTION POLICY 1 XI. ACCOUNTABILITY MECHANISM 1 XII. RECORD OF PAM CHANGES 1 Attachment 1: Environmental Management Plan Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. Liaoning Provincial Government (LPG) through the Provincial Project Coordination Group (PPCG) and Liaoning Project Management Office (PMO) - Liaoning Urban Construction and Renewal Project Office (LUCRPO), the project executing agency, Shenyang Shenbei Water Works Co. Ltd. (SBWW), Fuxin City Heating Power Corporation (FHC), Xinmin City Urban Rural Construction and Rehabilitation Project Management Office (XMPMO), Shenbei New District International Financial Institutions Loaned Project Management Office (SBPMO), Heishan County Municipal Construction Management Department (HSCMD), Beichen Road Construction Project Management Office (BCPMO), Huanren County Hunjiang Street, Zhongxin Street and Street Alleys Rehabilitation Project Headquarters (HRPH), and Liaoning Yaodu Investment (Group) Co. Ltd. (YAODU), the implementing agencies, are wholly responsible for the implementation of the ADB-financed project, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by LPG, PPCG, LPMO, SBWW, FHC, XMPMO, SBPMO, HSCMD, BCPMO, HRPH, and YAODU with their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan Agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail. After ADB Board approval of the project's report and recommendation of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. Abbreviations ADB = Asian Development Bank CNY = Chinese Yuan CQS = consultant qualification selection DMF = design and monitoring framework EIA = environmental impact assessment EMP = environmental management plan EPB = Environment Protection Bureau FMA = financial management assessment FHC = Fuxin City Heating Power Corporation GAP = gender action plan GRM = grievance redress mechanism ICB = international competitive bidding LA&R = land acquisition and resettlement LIBOR = London interbank offered rate LPG = Liaoning Provincial Government LPFD = Liaoning Provincial Finance Department LPMO = Liaoning Project Management Office LRB = Land Resource Bureau NCB = national competitive bidding NMT = non-motorized traffic O&M = operation and maintenance PAM = project administration manual PCA = procurement capacity assessment PIU = project implementation unit PMO = project management office PPCU = project public complaint unit PPMS = project performance management system PRC = People’s Republic of China QBS = quality based selection QCBS = quality- and cost based selection RP = resettlement plan RRP = report and recommendation of the President to the Board SBWW = Shenyang Shenbei Water Works Co. Ltd. SDAP = Social Development Action Plan SOE = statement of expenditure SPS = Safeguard Policy Statement WWTP = wastewater treatment plant Weights and Measures km = kilometer m2 = square meter m3 = cubic meter mu = Chinese land measuring unit (1 hectare = 15 mu) o 120 o 00'E 124 00'E INTEGRATED DEVELOPMENT OF KEY TOWNSHIPS IN CENTRAL LIAONING IN THE PEOPLE'S REPUBLIC OF CHINA N 0 20 40 60 80 Kilometers 43 o 00'N 43 o 00'N Xifeng FUXIN Tieling TIELING SHENYANG Fuxin Shenbei Xinmin Nanzamu Fushun Beizhen Chaoyang SHENYANG JINZHOU Heishan Waitoushan CHAOYANG FUSHUN Lingyuan Goubangzi Liaozhong Liaoyang Kazuo Linghai Huanren Panshan LIAOYANG Benxi Jinzhou BENXI PANJIN Panjin Anshan Nanfen Jianchang Haicheng HULUDAO Huludao DANDONG Kuandian Yingkou ANSHAN Suizhong Gaizhou Fengcheng YINGKOU Dandong Donggang Zhuanghe DALIAN Jinzhou o o 39 00'N Dalian 39 00'N Phase 2 City or Township (Integrated Development of Key Townships in Central Liaoning) Phase 1 City or Township (Loan 2550-PRC) Provincial Capital City/Town This map was produced by the cartography unit of the Asian Development Bank. National Road The boundaries, colors, denominations, and any other information shown on this District Boundary map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, Provincial Boundary colors, denominations, or information. Boundaries are not necessarily authoritative. 120 o 00'E 124 o 00'E 12-2687 HR I. PROJECT DESCRIPTION Borrower People’s Republic of China Classification Sector: Multisector Subsectors: Other municipal services, energy utility services, and urban transport Themes: Economic growth; environmental sustainability; and private sector development Subthemes: Promoting economic efficiency and enabling business environment, urban environmental improvement, and private sector investment Gender mainstreaming: Effective gender mainstreaming Climate change impact: mitigation (low) Targeting classification: General intervention Location impact: Urban (high) Risk categorization Complex Environment Assessment A Involuntary Resettlement A Indigenous People Assessment C Implementation Period October 2012 – December 2017 Estimated Completion Date 31 December 2017 (loan closing date = 30 June 2018) Executing Agency Liaoning Provincial Government (LPG) through Liaoning project management office (PMO)a Implementing Agencies 1. Shenyang Shenbei Water Works Co. Ltd. (SBWW) 2. Fuxin City Heating Power Corporation (FHC) 3. Xinmin City Urban Rural Construction and Rehabilitation PMO 4. Shenbei New District International Financial Institutions Loaned PMO 5. Heishan County Municipal Construction Management Department 6. Beichen Road Construction PMO 7. Huanren County Hunjiang Street, Zhongxin Street and Street Alleys Rehabilitation Project Headquarters 8. Liaoning Yaodu Investment (Group) Co. Ltd. a The Liaoning Urban Construction and Renewal Project Office is the official name of the Liaoning PMO. 1 A. Rationale 1. Located in northeast PRC, Liaoning Province has seen economic growth lag that of other provinces since 1980 due to resource depletion and a painful transition from a state- dominated economy. Moreover, rapid urbanization has left many of Liaoning’s cities and towns with poor infrastructure, severe pollution, significant poverty, and rural migrants with mismatched-employment skills. Central Liaoning's current population of 23.6 million is now 65% urban, and planners expect 85% of the population to be urban by 2050, largely through rural– urban migration.1 Consequently, in the coming decades, demand from millions of rural migrants for urban infrastructure, municipal services, and employment must be satisfied. Recent announcements on hukou reform are expected to intensify this demand.2 2. The Government of Liaoning Province recognizes that urbanization is pressuring Shenyang, the provincial capital, which has a population of 7.4 million. At the same time, it aims to reap the benefits of concentrated urbanization, so it is facilitating